Bincentive's smart lending bot is a decentralized asset lending tool. The lending assets stay on the member's Bitfinex account. The member only needs to provide an API key that authorizes lending. No cancellation of pending orders, currency transactions, or withdrawals, etc. are permitted.
The reason why lending on Bitfinex generates profit is that Bitfinex provides margin trading, and traders who have leverage requirements in the market will use Bitfinex to perform leverage operations.
Because Bitfinex is a mainstream exchange and has high liquidity, there is a large amount of short- and medium-term lending needs. Members who use smart lending will also be lending idle funds through Bitfinex to earn interest.